Online grocery is growing rapidly from its small base. In fact, its market value has doubled from 2016 to 2018, suggesting that consumers are starting to get more comfortable ordering essentials and certain foods online.
Meanwhile, consumer packaged goods (CPGs) has seen the majority of its growth come from online. Although consumers may not be entirely comfortable buying items like produce online yet, that will likely come as their familiarity and trust in online grocery grows, according to a report published by Business Insider Intelligence, New York.
In the first “Online Grocery Report,” Business Insider Intelligence looks at a variety of grocers' curbside pickup and grocery delivery options, analyzing how they compare with competitors' strategies, how profitable they are for the grocer and what their future holds.
Here are some key takeaways from the report:
· Online grocery currently comprises a small portion of grocery overall, but is on a rapid rise.
· However, the value of the U.S. online grocery market has grown from $12 billion in 2016 to $26 billion in 2018.
· Both established grocers and players new to the space are rushing to improve their curbside pickup and delivery options by employing differing strategies suited to their size and strengths.
· Regardless of grocers' individual strategies, they will all need to find a way to run their online grocery offerings in a profitable way to address consumers' barriers to adoption.